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Marketing
Q:
Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to asA. transnational consumers.B. meganational consumers.C. international consumers.D. multinational consumers.E. global consumers.
Q:
Global consumers refer toA. all potential consumers for any and all products or services regardless of cultural, ethnic, or national origins.B. customers within a nation who consider the entire world a single marketplace.C. consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.D. consumer groups living in many countries or regions of the world that have similar needs but seek customized features and benefits from products or services that reflect their individual cultures.E. multinational organizations whose products incorporate raw materials, assembly, and distribution contributions from multiple nations before they are marketed.
Q:
Which of the following statements about global brands is most accurate?A. A global brand has centrally coordinated marketing programs.B. A global brand is marketed under different names but uses identical ads for all markets.C. A global brand alters the product formulation or service for each geographical region.D. A global brand delivers multiple benefits based on the GDP of each country.E. A global brand is a collaborative effort among several different national firms.
Q:
Which of the following statements regarding global brands is most accurate?A. A global brand has dispersed marketing centers, each of which is responsible for a specific region.B. A global brand is marketed under the same name in multiple countries.C. A global brand alters the brand name for each dialect in a geographical region.D. A global brand delivers multiple benefits to the GDP of each country.E. A global brand is a collaborative effort among several different transnational firms.
Q:
A global brand refers toA. two or more domestic products that coincidentally share the same brand name but represent two completely unrelated products.B. two or more international products that coincidentally share the same brand name but represent two completely unrelated products.C. a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.D. a brand that is essentially the same but that has had minor adaptations made to meet the more specific needs of different nations.E. a brand marketed under different names in multiple countries with similar and centrally coordinated marketing programs.
Q:
A global marketing strategy refers toA. the strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.B. the strategy of transnational firms not to employ adaptive marketing techniques when there are cultural differences, but to redirect their marketing resources towards customer education.C. the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.D. the global strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products through a host nation's local businesses.E. the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.
Q:
Disney employed a(n) __________ marketing strategy for its Disneyland Paris, particularly when it came to the eateries in the park. These restaurants featured recipes that were revised for local tastes, alcoholic beverages (not permitted in previous parks), and increased outdoor seating.A. globalB. transnationalC. multidomesticD. meganationalE. international
Q:
A multidomestic marketing strategy refers toA. the strategy of transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.B. the strategy used by firms that use the same product variations, brand names, and advertising programs for every country in which they do business.C. the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.D. the strategy of seeking out already established firms in other nations and selling them the rights to manufacture and distribute the firm's products.E. the strategy currently used by most U.S. domestic firms that when entering a new international market, these firms offer only those products that require the least amount of product adaptation.
Q:
Unilever markets its Snuggle fabric softener differently to different parts of the world. Unilever is a(n) __________ firm.A. ethnocentricB. multinationalC. transnationalD. globalE. international
Q:
Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories, making the soft drink industry an example ofA. global competition.B. acculturation.C. free trade.D. global branding.E. transactional exchange.
Q:
Global competition exists whenA. a firm produces and markets its products domestically rather than globally.B. firms originate, produce, and market their products and services worldwide.C. two firms from two different countries compete for market share in a single domestic market.D. two or more firms from different nations combine their resources to market products in a single domestic market.E. the firm from one nation dominates the market for its product in every nation.
Q:
CAFTA-DR, a comprehensive free trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and __________.A. the United StatesB. PanamaC. BelizeD. CubaE. Mexico
Q:
Pan-European marketing strategies are possible becauseA. there is a legally binding code of economic conduct.B. there are effective countermeasures for protectionism.C. there are fewer regulatory restrictions on transportation, advertising, and promotion.D. there is a common language advantage among EU consumers.E. most companies within the EU are engaging in strategic global partnerships.
Q:
The EU has benefited firms in its member nations becauseA. it provides a safe haven in times of world economic crises.B. there is a common language advantage among EU consumers.C. most companies within the EU are engaging in strategic global partnerships.D. there is now a legally binding code of economic conduct.E. firms do not need to market their products and services on a nation-by-nation basis.
Q:
The European Union (EU) has been beneficial to electronic commerce because it is no longer necessary toA. use multiple languages when settling accounts for purchases made across borders.B. continually monitor currency exchange rates among participating nations.C. trade with the former Eastern European communist countries.D. obey international e-trade regulations.E. use the American dollar as the economic standard.
Q:
To eliminate the need to continually monitor currency exchange rates, __________ of the countries in the European Union (EU) have adopted a common currency called the euro.A. 11B. 16C. 20D. 28E. 32
Q:
The European Union (EU) in early 2015 consisted of 28 countries with more than 500 million consumers. The EU has eliminated most barriers to the free flow of products, capital, and labor across its borders. Which of the following countries is NOT a member of the EU?A. LatviaB. GreeceC. IrelandD. SwitzerlandE. England
Q:
The World Trade Organization (WTO) refers toA. the world's largest banking institution responsible for establishing and maintaining equitable exchange rates for all member nations.B. the world's largest licensing institution responsible for the certification of products distributed to a global market.C. an institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.D. a multinational trade organization composed of the world's wealthiest nations whose primary purpose is to aid in the economic growth of developing nations.E. a multinational trade organization comprised of the world's wealthiest nations whose primary purpose is to promote free trade economies.
Q:
An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the __________.A. League of NationsB. World Trade Organization (WTO)C. Association for Commerce Equity (ACE)D. United Nations Board of Trade (UNBT)E. Global Better Business Bureau (BBB-G)
Q:
Russia currently has a limit on pork of 400,000 metric tons annually that can be imported from any country. This restriction would be considered aA. tariff.B. trade imbalance.C. excise tax.D. quota.E. subsidy.
Q:
The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that existed in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of a(n) __________ established by the U.S. government.A. tariffB. trade imbalanceC. excise taxD. subsidyE. quota
Q:
A quota refers toA. a government tax on products or services entering a country that primarily serves to raise prices on imports.B. government payments to companies or industries that serve to lower costs and provide a competitive advantage to domestic industries.C. a restriction placed on the amount of a product allowed to enter or leave a country.D. a minimum requirement for the purchase of specific products or services between two nations.E. a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.
Q:
Whirlpool recently asked the United States to impose __________ on washing machine imports made by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which could jeopardize American jobs.A. boycottsB. quotasC. sanctionsD. tariffsE. embargoes
Q:
If you wanted to set up a business importing amber jewelry from Latvia to the United States, you would have to plan on paying the U.S. Customs Service roughly 20 percent of the value of the product as a(n) __________.A. bribeB. tariffC. subsidyD. excise taxE. quota
Q:
The __________ imposed on imported bananas by European Union countries cost consumers $2 billion a year in higher prices.A. boycottsB. quotasC. sanctionsD. subsidiesE. tariffs
Q:
Tariffs refer toA. government payments to companies or industries that primarily serve to create competitive advantage for domestic products.B. government taxes on products or services entering a country that primarily serve to raise prices on imports.C. a restriction placed on the amount of a product allowed to enter or leave a country.D. a minimum requirement for the purchase between two or more nations of products or services.E. a refusal to purchase or exchange products or services with another nation unless certain financial or ideological requirements have been satisfied.
Q:
Government taxes on products or services entering a country that primarily serve to raise prices on imports are referred to asA. tariffs.B. quotas.C. WTO taxes.D. foreign excise taxes.E. trade subsidies.
Q:
Figure 6-1
The question mark in Figure 6-1 above leads to which of the following as a result of the imposition of tariffs and quotas?
A. an increase world trade
B. a decrease world trade
C. a limit on exports
D. a limit on import
E. countertrade
Q:
Figure 6-1
The question mark in Figure 6-1 above which results from the imposition of tariffs and quotas is referred to as
A. domestic imperialism.
B. protectionism.
C. blocked competition.
D. import taxation.
E. trade restriction.
Q:
Which of the following issues raises concerns about the ethics of protectionism?A. Competitive advantage grows out of continuous improvement.B. Small firms succeed in foreign niche markets.C. Tariffs have declined from an average of 40 percent to less than 5 percent.D. Regional trade agreements provide preferential treatment for member nations.E. Pan-European marketing strategies are possible due to greater uniformity in packaging standards.
Q:
Recently, the United States imposed a 35% tariff on Chinese tire imports in hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example ofA. imposing the rule of eminent domain.B. increasing ethnocentrism.C. enhancing domestic imperialism.D. increasing protectionism.E. slowing countertrade.
Q:
Those in favor of protectionism argue that itA. helps reduce tariffs and quotas.B. encourages the development of domestic industries.C. encourages economic reliance on foreign countries.D. creates opportunities for the outsourcing of domestic jobs.E. creates a more favorable environment for a global economy.
Q:
The argument for protectionism is that itA. protects a nation's political security.B. encourages economic reliance on foreign countries.C. inhibits the development of domestic industries.D. creates opportunities for the outsourcing of domestic jobs.E. creates a more favorable environment for a global economy.
Q:
Protectionism refers toA. the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.B. the use of tariffs, quotas, and boycotts with the express intention of putting foreign competitors out of business.C. the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.D. a form of domestic imperialism that holds that only those products manufactured within one's home nation are of sufficient quality to warrant purchase.E. the practice of purchasing products exclusively from a foreign developing country in order to develop its industries and economic infrastructure.
Q:
Five trends in the past decade have significantly influenced the landscape of global marketing. One of them isA. an increase in economic protectionism and a decline free trade.B. a more aggressive attitude towards initiating international tariffs and quota systems.C. a decrease in most countries' GDPs and a renewal of nationalism.D. the growing prevalence of economic espionage.E. an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
Q:
Why did Dell, Inc., embark on a global growth initiative?A. U.S. sales had decreased.B. Dell was recently purchased by Lenovo, a major Chinese competitor.C. There was too much competition in Dell's direct-to-consumer marketing channel.D. There were fewer restrictions in computer technology outside the United States.E. Emerging economies offered significant growth potential.
Q:
Define licensing, cite its advantages and disadvantages, and explain what franchising is.
Q:
Define a currency exchange rate and discuss its importance to global companies.
Q:
"A signal that the world's trading nations are committed to open markets - and will resist protectionism - would inject confidence and energy into our markets," says the U.S. Trade Representative. Discuss this statement.
Q:
What global market-entry strategy did Mary Kay use when it entered India?A. direct importingB. licensingC. indirect exportingD. joint ventureE. direct exporting
Q:
Mary Kay, Inc. can be classified as which type of company when marketing its products around the world?A. multinational firmB. transnational firmC. international firmD. global marketing firmE. multidomestic firm
Q:
Before Apple's iPhone 5 was officially for sale in China, it was being sold there. These phones were purchased in the United States and Australia, and then resold by unauthorized vendors in China for between $1,700 and $2,000. These products are considered to be part ofA. under the counter sales.B. over the counter sales.C. the gray market.D. integrated global channels.E. breaking the distribution monopoly.
Q:
Another term for a gray market isA. equivalent exporting.B. back-channel market.C. mature marketing.D. parallel importing.E. transparent market.
Q:
A gray market refers toA. the segment of products specifically designed for the need of older buyers.B. a once active and powerful market that is rapidly becoming the bottom of the barrel.C. a situation where products are sold through unauthorized channels of distribution.D. a pricing structure that is based upon haggling that is considered acceptable in some countries but not others.E. the willingness of one party to accept gifts in exchange for better prices or price allowances.
Q:
In international trade, dumping refers toA. illegally disposing of unusable or damaged goods to avoid paying removal fees and/or taxes.B. a firm selling damaged or unsalable goods below their original production cost.C. a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for seasonal goods.D. a firm selling quality goods at significantly lower prices for the primary purpose of reducing inventory to make room for newer or more expensive models.E. a firm selling a product in a foreign country below its domestic price or below its actual cost.
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels of distribution in global marketing are often long and complex. Box A represents the __________ and Box B identifies the __________.
A. seller; exporter
B. seller; seller's international marketing headquarters
C. seller international marketing headquarters; channels between nations
D. channels between nations; channels within foreign nation
E. channels within foreign nation; foreign retailer
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. E represents the
A. seller.
B. channels between nations.
C. seller's international marketing headquarters.
D. final consumer.
E. channels within foreign nations.
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Channels within a foreign nation can be very long or surprisingly short. Which letter in the figure represents these channels?
A. A
B. B
C. C
D. D
E. E
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Which letter in the figure would identify intermediaries used to move the product from one country to another?
A. A
B. B
C. C
D. D
E. E
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. C represents the
A. seller.
B. seller's international marketing headquarters.
C. channels within foreign nations.
D. final consumer.
E. channels between nations.
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. B represents the
A. channels within foreign nations.
B. channels between nations.
C. seller's international marketing headquarters.
D. political forces.
E. final consumer.
Q:
Figure 6-5
Figure 6-5 above outlines the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Box A represents the
A. seller.
B. seller's international marketing headquarters.
C. channels between nations.
D. channels within the foreign nation.
E. final customer.
Q:
Figure 6-4Global companies have five strategies for matching products and their promotion efforts to global markets. According to Figure 6-4 above, E refers to which type of strategy?A. product extension strategyB. product adaptation strategyC. dual adaptation strategyD. product invention strategyE. communication adaptation strategy
Q:
Nescafe coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafe generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescaf is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product/promotion strategy?A. product extensionB. product customizationC. product adaptationD. dual adaptationE. dual integration
Q:
KFC has added many offerings to its menus in China to appeal to local tastes, including the "Dragon Twister," which is a chicken wrap with Peking-duck sauce. This is an example of which type of global marketing product and promotion strategy?A. product extensionB. product customizationC. product adaptationD. product inventionE. product integration
Q:
GlaxoSmithKline plc. of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?A. product customizationB. product extensionC. product adaptationD. product inventionE. product integration
Q:
Coca-Cola, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?A. product customizationB. product adaptationC. product extensionD. product integrationE. product invention
Q:
Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now than 3,700 restaurants in 650 Chinese cities, and KFC has a 40% market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90% of its Chinese stores, so it appears that the company prefers __________ in this market.A. licensingB. local assemblyC. a joint ventureD. direct investmentE. local manufacturing
Q:
One disadvantage of direct investment when entering a new global market is thatA. intermediaries have the potential to harm the brand.B. the firm entering the foreign market must pay royalties to the government.C. the company forgoes control over its product.D. the financial commitments involved.E. this method is likely to provide the fewest cost savings relative to the other global market-entry options.
Q:
One advantage of direct investment when entering a new global market is thatA. intermediaries have the potential to harm the brand.B. the firm entering the foreign market does not have to pay royalties to the government.C. the company forgoes control over its product.D. the firm gains and uses a better understanding of local market conditions.E. this method is likely to provide the fewest subsidies from the host country's government.
Q:
Which form of entry into a foreign market requires the greatest commitment?A. direct exportingB. direct investmentC. joint ventureD. licensingE. indirect exporting
Q:
Direct investment in international marketing refers toA. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.B. contracting with a foreign firm to manufacture products according to certain specifications.C. a national market-entry strategy that entails a foreign company and a local firm investing together to create a local business.D. having a company handle its own exports directly, without intermediaries.E. a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.
Q:
Starbucks and Tata Global Beverage have together formed Starbuck Coffee A Tata Alliance in order to bring Starbucks to India. The global market-entry strategy is known asA. franchising.B. a joint venture.C. licensing.D. direct investment.E. exporting.
Q:
A joint venture refers toA. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.B. contracting with a foreign firm to manufacture products according to certain specifications.C. when a foreign company and a local firm invest together to create a local business.D. having a company handle its own exports directly, but using intermediaries for importing.E. exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's products abroad.
Q:
Yogen Frz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Frz shops in Dubai, Oman, Qatar, Bahrain, and Kuwait. Yogen Frz is engaged inA. dual adaptation.B. a joint venture.C. direct exporting.D. indirect exporting.E. franchising.
Q:
Yum! Brands, the restaurant division of PepsiCo, has 12,600 KFC restaurants abroad, with more than 3,700 restaurants in China. Many of the latter are locally owned and subject to a contractual agreement that allows the owners to operate the business under the established KFC brand name and according to specific rules. Yum! Brands is engaged inA. contract assembly.B. a joint venture.C. contract manufacturing.D. a partnership.E. franchising.
Q:
One variation of licensing is referred to asA. direct investment.B. joint ventures.C. direct exporting.D. franchising.E. dual adaptation.
Q:
Select Service Partner (SSP) Group has operations in 30 countries involving food and beverage establishments, often in transit hubs like airports and railway stations. SSP also operates Starbucks locations in airports in Finland, Sweden, and Norway. SSP pays Starbucks a royalty based on sales as well as a fee for each store. In these instances, Starbucks is engaged inA. direct exporting.B. indirect exporting.C. contract manufacturing.D. foreign assembly.E. licensing.
Q:
All of the following are disadvantages of licensing EXCEPT:A. the licensor reduces its potential profits gained from product sales.B. the foreign country gains employment by having the product manufactured locally.C. the licensor forgoes control of its product.D. should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.E. the licensor may be creating its own competition.
Q:
Which of the following is a disadvantage associated with licensing?A. The licensee pays lower wages and sells at lower prices.B. The licensor may create its own competition.C. The foreign government dislikes it because it does not increase local employment.D. This is the most expensive and risky method for global expansion.E. The firm's brand does not get international exposure.
Q:
All of the following are advantages of licensing EXCEPT:A. the foreign country gains employment by having the product manufactured locally.B. the licensee gains information that allows it to start with a competitive advantage.C. the low risk to the company granting the license.D. the licensor's brand name can never be harmed as a result of the licensee.E. the capital-free entry into a foreign country.
Q:
Licensing refers toA. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.B. contracting with a foreign firm to manufacture products according to certain specifications.C. when a foreign country and a local firm invest together to create a local business.D. having a company handle its own exports directly without intermediaries.E. exporting through an intermediary, which often has the knowledge and means to succeed in selling a firm's product abroad.
Q:
The prominent global market-entry strategy among small- and medium-sized companies isA. direct exporting.B. direct franchising.C. licensing.D. joint venture.E. direct investment.
Q:
Most companies become involved in direct exporting whenA. foreign governments believe that they will benefit the most from allowing the entry of direct exports.B. emerging markets in foreign countries become economically viable.C. they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries.D. the domestic market becomes saturated with competing products and services.E. evolving technologies in foreign countries come online.
Q:
Direct exporting refers toA. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.B. contracting with a foreign firm to manufacture products according to certain specifications.C. when a foreign country and a local firm invest together to create a local business.D. using additional parties when a firm sells its domestically produced goods in another country.E. when a firm sells its domestically produced goods in a foreign country without intermediaries.
Q:
To avoid competing with Japanese firms through their traditional channel of distribution, Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?A. grocery storesB. flower shopsC. beauty salonsD. department storesE. gift stores
Q:
Indirect exporting occurs when a firm sells its domestically produced products in a foreign countryA. in violation of a quota.B. without paying import tariffs.C. without paying export duties.D. through a joint venture.E. through an intermediary.
Q:
When a firm sells its domestically produced products in a foreign country through an intermediary, it is referred to asA. direct exporting.B. indirect exporting.C. licensing.D. franchising.E. foreign assembly.
Q:
Indirect exporting refers toA. offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee.B. selling a firm's domestically produced products in a foreign country without interference by that government.C. contracting with a foreign firm to manufacture products according to stated specifications.D. avoiding the use of additional parties when a firm sells its domestically produced products in another country.E. selling a firm's domestically produced products in a foreign country through an intermediary.
Q:
Exporting refers to a global market-entry strategyA. in which a company will sell its products in international markets but not in its own domestic market.B. in which a company produces goods in one country and sells them in another country.C. in which a company will manufacture its product in several countries at the same time using different brand names and slight product modifications.D. in which a company will manufacture products specifically designed for non-domestic markets, but will sell those products to distributors who take title and resell the products to different companies around the world.E. whereby a product is made in one country, assembled in a second country, and ultimately marketed to a third country.